Italy’s annual inflation rate slowed to 1.0% in January 2026, down from 1.2% in December, in line with preliminary estimates. This was the lowest rate since October 2024 and followed the introduction of the ECOICOP version 2 classification, as well as an update of the consumer price index reference base to 2025=100.
Goods prices fell by 0.2% year on year, while food prices increased by 1.9%, with unprocessed food up 2.5% and processed food up 1.9%. Price increases were also recorded for housing-related services (+4.4%), tobacco (+3.3%), and recreational, cultural, and personal care services (+3.0%). Overall, services prices rose by 2.5%.
Core inflation, which excludes energy and fresh food, held steady at 1.7%, while inflation excluding only energy was 1.9%. On a monthly basis, consumer prices rose 0.4% in January, following a 0.2% increase in December. The EU-harmonized inflation rate also moderated to 1.0% in January 2026 from 1.2% in December.
